Fiscal Note
The proposed resolution authorizes the City of Madison Water Utility to enter into a public water system transition agreement with the Lake Forest Water Cooperative Association (Co-Op). Under the terms of the agreement, the City will install water main, hydrants, and service laterals to extend City water service to each property currently serviced by the Lake Forest Water Cooperative Association. The estimated cost of the water infrastructure improvements is $3.5 million. The Water Utility will apply for funding from the Safe Drinking Water Loan Program administered by the Wisconsin Department of Natural Resources, separately for one-third of the project costs in each year, from 2026 to 2029. If the Water Utility is unable to secure funding from the Safe Drinking Water Loan Program, the costs will be funded through General Obligation Bonds. At this time, potential assessments to the property owners are unknown until assessment hearings are completed. Funding is available in the 2026 Adopted Water Utility Capital Budget (Munis #12507). If necessary, future capital budget requests will be modified through the City's budget process to adjust project years or funding source changes. Additionally, the agreement contains provisions for an emergency intertie agreement. The project is anticipated to be completed by the end of 2029. If the Co-Op's infrastructure fails before the end of the project, the Water Utility will provide the Co-Op with municipal water. Upon approvl from the Public Service Commission, the Co-Op will be charged $3.11 per 1,000 gallons for the volumetric charge, and $111.70 a month as a general service charge based on the Water Utility's most current fee schedule. At this time, no additional appropriation is required.
Title
Authorizing the Mayor and City Clerk to enter into a Public Water System Transition Agreement with the Lake Forest Water Cooperative Association (District 13).
Body
WHEREAS, the Lake Forest Water Cooperative Asso...
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